In the biggest refund order in its two-decade history, the Securities and Exchange Board of India (Sebi) directed two Sahara group companies to return at least Rs 4,843 crore collected under their debenture schemes to investors. Sebi also asked the entities to pay an interest of 15 per cent per annum from the date of receipt of money till the refund. The order will, however, take effect only after it is considered by the Supreme Court.
The two companies are Sahara Commodity Services Corporation and Sahara Housing Investment Corporation. Sahara Commodity (SIRECL) and Sahara Housing (SHICL) started raising money by issuing optionally fully convertible debentures (OFCDs) in March 2008 and September 2009, respectively. According to the balance sheet of the former, it had raised Rs 4,843 crore in June 2009.
SEBI has banned the Sahara promoter and the directors of the companies from associating themselves, with any listed public company and any public company which intends to raise money from the public, till they pay the OFCD subscribers to SEBI's satisfaction. Both companies have been restrained from accessing the securities market for raising funds, till the time the aforesaid payments are made. In November 2010, SEBI had passed an ad interim order restraining SIRECL and SHICL (including the persons named as promoters and directors) from raising funds under the Red Herring Prospectus through these debentures, till further directions
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